SOURCE: NextStudent

December 07, 2006 12:20 ET

NextStudent Offers 1% Locked Discount Incentive on Federal Student Loan Consolidation

PHOENIX, AZ -- (MARKET WIRE) -- December 7, 2006 -- Many parents and students who are looking to consolidate their student loans are not aware of the 1 percent LOCKED discount incentive on federal student loan consolidation offered by Phoenix-based NextStudent, the premier education funding company.

Although federal law sets the interest rate for all federal student loan consolidation, lenders are at liberty to put together incentives that entice borrowers to fund with their company. But not all incentives are created equal, and the borrower must beware.

With NextStudent's federal student loan consolidation, when student loans are consolidated under the Standard Locked Package incentive, borrowers receive a LOCKED 1 percent discount on the interest rate after 36 on-time payments. This is a discount that is guaranteed and does not change for the life of the student loan.

While many borrowers offer similar incentives, NextStudent's discounts are permanent and cannot be forfeited. For instance, all borrowers with federal student loans, whether subsidized or unsubsidized Stafford loans for undergraduates or graduates, PLUS loans (Parent Loans for Undergraduate Students), or Perkins loans, qualify for NextStudent's 1 percent rate reduction.

However, most student borrowers are unaware that a student who has used deferment or forbearance on any federal student loan is INELIGIBLE for this same discount under some competing lenders. In addition, with some competing lenders it is easy to lose the discount after a single late payment. Between 85 percent and 90 percent of those borrowers who earn the 1 percent discount with other lenders lose the discount after 36 on-time payments.

With NextStudent's Standard Locked Package, college students and their parents can rest easy knowing that their 1 percent discount rate and accompanying savings are in place as long as the loan exists.

In many instances, federal student loan consolidation with NextStudent can reduce payments by up to 60 percent, and the repayment period is extended up to 30 years. This gives many families who are struggling with making payments plenty of time to meet their obligations. The student loan industry's own statistics suggest that up to 39 percent of student borrowers no longer can afford to make payments on their student loans due to unmanageable debt burden after college.

Student loan consolidation with NextStudent not only meets the basic needs of funding a college education, it also includes significant incentives not offered by competitors, resulting in impressive savings and easy debt management for both student and parent borrowers.

NextStudent's Federal Student Loan Consolidation Standard Locked Package, which includes the 1 percent LOCKED rate reduction incentive after 36 on-time payments, is available to borrowers now and throughout the year.

About NextStudent

NextStudent, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation programs, and college savings plans.

The NextStudent Scholarship Search Engine, one of the nation's oldest and largest scholarship search engines, is updated daily, available free of charge, completely private -- and represents 2.4 million scholarships worth $3.4 billion.

For more information about NextStudent and its student loan programs, please visit the company's Web site at http://www.nextstudent.com/.

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